The Rise of Ethernet Revenue

Ethernet revenue is expected to nearly triple by 2014, rising from $2.4 billion in 2009 to $7.8 billion, according to new market research conducted by The Insight Research Corporation.

With Ethernet usage forecasted to increase by 25%, the total spend by enterprises and consumers over the next five years should exceed $27 billion. Ethernet services are now widely available across the board from Tier 1 and Tier 2 carriers and service providers to meet today’s demand for the cost effective and bandwidth-friendly connectivity solution.

Though the data provided by Insight Research shows Ethernet services are not immune to the economic downturn—and will most likely dip by a projected 14% by the end of 2009—the projected acceleration in the following four years will more than make up for the slowdown caused by the recession, peaking in 2010 and 2012.

Robert Rosenberg, president of Insight Research Corporation, says, “The carriers are growing their Ethernet revenues in the context of steadily increasing data bandwidth demand and because Ethernet has real cost advantages in terms of providing flexible bandwidth and scalability that is superior to many competitive services. Though we are predicting an accelerating pace of Ethernet adoption, we are not suggesting that Ethernet is ready to 'take over the world.' Generally speaking, private line and frame relay customers are not ready to abandon these services, so the migration to Ethernet is going to be slow and steady.”